Latest news with #TurtleBeachCorporation
Yahoo
11 hours ago
- Business
- Yahoo
Turtle Beach Corporation to Participate in Oppenheimer 25th Annual Consumer Growth and E-Commerce Conference
SAN DIEGO, June 06, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today announced that Cris Keirn, Chief Executive Officer, and Mark Weinswig, Chief Financial Officer, will virtually participate in the Oppenheimer 25th Annual Consumer Growth and E-Commerce Conference, on June 9-11. Chief Executive Officer Cris Keirn will host a fireside chat on Tuesday, June 10 at 11:15a.m. ET, and management will also be available for meetings during the conference. A live webcast of the event will be available through the 'Events & Presentations' section of TBCH's website at A replay of the webcast will be available on the investor relations website for 90 days. About Turtle Beach CorporationTurtle Beach Corporation (the 'Company') ( is one of the world's leading gaming accessory providers. The Company's namesake Turtle Beach brand ( is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC ( in 2024. Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol: TBCH. Cautionary Note on Forward-Looking StatementsThis press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words 'may', 'could', 'would', 'should', 'believe', 'expect', 'anticipate', 'plan', 'estimate', 'target', 'goal', 'project', 'intend' and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management's current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise. CONTACTS Investors:tbch@ Public Relations & Media:MacLean MarshallSr. Director, Global CommunicationsTurtle Beach Corporation(858)
Yahoo
08-05-2025
- Business
- Yahoo
Turtle Beach Corporation Announces Growth in Revenue, Adjusted EBITDA and Gross Margins in First Quarter 2025 Results and $75 Million Share Repurchase Program
–Net Revenue of $63.9 million, up 14% compared to prior year––Gross Margin improved to 36.6%, an increase of approximately 470 basis points compared to prior year––Net Loss of $(0.7) million compared to Net Income of $0.2 million in prior year––Adjusted EBITDA of $4.1 million, up from $1.4 million in prior year––Generated $40.5 million in cash flow from operations, the highest level since 2019––Authorized a new $75 million stock repurchase program– SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported strong financial results, including growth in revenue, Adjusted EBITDA, and gross margins in the first quarter ended March 31, 2025. First Quarter Highlights Net revenue was $63.9 million, an increase of 14% compared to the prior year period. Gross margin improved approximately 470 basis points to 36.6% compared to 31.8% in the prior year. Net loss was $(0.7) million or ($0.03) per diluted share compared to net income of $0.2 million or $0.01 per diluted share in the prior year period. Adjusted EBITDA was $4.1 million, compared to $1.4 million in the prior year period. Generated $40.5 million in cash flow from operations, the highest level since 2019. Authorized a new $75 million stock repurchase program. 'With incremental revenue and margin from our March 2024 acquisition of PDP, we delivered strong Q1 growth over the prior year, despite a year-to-date decline in gaming accessories markets due to current macroeconomic headwinds. Our Adjusted EBITDA growth reflects the benefits from our expanded portfolio of next-generation gaming accessories and highlights the accretive advantages of our M&A strategy and strong execution,' said Cris Keirn, CEO, Turtle Beach Corporation. 'As we have entered into a dynamic and complex macroeconomic environment, we have rapidly adapted our operations to better position the Company for the future. We have been prepared for the potential shift in tariffs and have quickly responded. We proactively increased inventory levels at the start of the year, and following the announcement in early April of new tariffs, we took immediate and decisive action. We are pleased to report that because of our early planning and preparedness, we are transitioning significant production out of China. As such, following the first quarter, less than 10% of our supply for the U.S. will come from China. For the remainder of 2025, our U.S. supply will primarily come from Vietnam, and we will continue evaluating and implementing further diversification of our end-to-end supply chain. Additionally, we have mitigation plans in place should additional changes occur to the current tariff environment for Vietnam. The portion of our supply chain that we continue maintaining in China will primarily be dedicated to producing goods for non-U.S. shipments. 'Our commitment to long-term value creation extends beyond product innovation. Over the past year, we implemented the largest share repurchase program in the Company's history, as we continue to opportunistically return capital to shareholders. The recent decision by our board of directors to authorize the repurchase of up to $75 million of our stock over the next two years signals our continued confidence in our prospects and our continued willingness to repurchase the Company's shares. 'Given recent events in the broader macroeconomic environment, we've made thoughtful revisions in our financial outlook. We remain confident in our near-term initiatives, the expertise of our team, and our ability to drive value for shareholders. Our focus on profitability, operational efficiency, and growth continues to drive our efforts as we adapt to these evolving conditions. We appreciate the ongoing support of our shareholders and stakeholders as we work toward more growth in 2026 and execute our strategy for sustainable, long-term success." Share Repurchase Update For the first quarter ended March 31, 2025, the Company repurchased $1.8 million of common stock. Since the Company began repurchasing shares under the prior stock repurchase authorization program in the second quarter of 2024, the Company has repurchased 1.9 million shares for an aggregate purchase price of $29.5 million. In line with its continued commitment to return capital to shareholders, the Company is opportunistically assessing various potential share repurchase strategies. The Company has authorized a new stock repurchase program of up to $75 million over the next two years. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, restrictions in the Company's debt agreements and other factors. The Company intends to fund the share repurchases using cash from operations or short-term borrowings and may suspend or discontinue repurchases at any time. The share repurchase program is scheduled to expire on May 6, 2027. Balance Sheet and Cash Flow SummaryAs of March 31, 2025, the Company had net debt of $43.6 million, comprised of $55.2 million of borrowings less $11.7 million of cash. During the first quarter ended March 31, 2025, the Company generated $40.5 million in cash flow from operations, the highest level since 2019. Financial OutlookDue to the ongoing macroeconomic uncertainty and the recent industry announcements regarding new game releases, the Company is revising its financial outlook for the full year 2025. The Company currently expects gaming accessories markets to improve throughout 2025 but remain down for the full year compared to 2024, resulting in Company net revenues in the range of $340 million and $360 million. As the Company continues to execute on its profitability initiatives, it currently expects Adjusted EBITDA to be between $47 million and $53 million. Earnings Conference Call and Webcast DetailsTurtle Beach will host a conference call and audio webcast today, May 8, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), during which management will discuss first quarter results and provide commentary on business performance and its current outlook for 2025. A question-and-answer session will follow the prepared remarks. The conference call may be accessed by telephone by dialing 877-407-0792 or 201-689-8263. A live audio webcast of the earnings conference call may be accessed on Turtle Beach's website at along with a copy of this press release and an updated investor presentation. A telephone replay of the call will be available through May 22, 2025, and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13752645. A replay of the webcast will also be available on the investor relations website for a limited time. About Turtle Beach CorporationTurtle Beach Corporation (the 'Company') ( is one of the world's leading gaming accessory providers. The Company's namesake Turtle Beach brand ( is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC ( in 2024. Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol: TBCH. Non-GAAP Financial MeasuresIn addition to its reported results, the Company has included in this earnings release certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as 'non-GAAP financial measures.' Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company's results. Non-GAAP financial measures are not an alternative to the Company's GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. 'Adjusted EBITDA' is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations, as further described in Table 4. These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company's operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The non-GAAP financial measures included herein exclude items that management does not believe reflect the Company's core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted EBITDA included as Table 4 below for the three months ended March 31, 2025, and March 31, 2024. By providing full year 2025 Adjusted EBITDA guidance, the Company provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2025 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company's Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company's actual results for such periods. Cautionary Note on Forward-Looking StatementsThis press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words 'may', 'could', 'would', 'should', 'believe', 'expect', 'anticipate', 'plan', 'estimate', 'target', 'goal', 'project', 'intend' and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management's current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise. CONTACTS Investors:tbch@ 277-1285 Public Relations & Media:MacLean MarshallSr. Director, Global CommunicationsTurtle Beach Corporation(858) Turtle Beach CorporationCondensed Consolidated Statements of Operations(in thousands, except per-share data)(unaudited) Table 1. Three Months Ended March 31, March 31, 2025 2024 Net revenue $ 63,901 $ 55,848 Cost of revenue 40,534 38,062 Gross profit 23,367 17,786 Operating expenses: Selling and marketing 12,453 9,013 Research and development 3,993 3,902 General and administrative 8,216 5,674 Insurance recovery (3,439 ) - Acquisition-related cost 608 4,910 Total operating expenses 21,831 23,499 Operating income (loss) 1,536 (5,713 ) Interest expense 2,006 150 Other non-operating expense, net 303 370 Loss before income tax (773 ) (6,233 ) Income tax expense (benefit) (109 ) (6,388 ) Net income (loss) $ (664 ) $ 155 Net loss per share Basic $ (0.03 ) $ 0.01 Diluted $ (0.03 ) $ 0.01 Weighted average number of shares: Basic 20,506 18,321 Diluted 20,506 19,389 Turtle Beach CorporationCondensed Consolidated Balance Sheets(in thousands, except par value and share amounts) Table 2. March 31, December 31, 2025 2024 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 11,684 $ 12,995 Accounts receivable, net 42,354 93,118 Inventories 73,664 71,251 Prepaid expenses and other current assets 14,533 11,007 Total Current Assets 142,235 188,371 Property and equipment, net 4,884 5,844 Goodwill 50,428 52,942 Intangible assets, net 40,382 42,398 Other assets 9,095 9,306 Total Assets $ 247,024 $ 298,861 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving credit facility $ 6,592 $ 49,412 Accounts payable 39,539 34,839 Other current liabilities 26,294 39,421 Total Current Liabilities 72,425 123,672 Debt, non-current 45,544 45,620 Income tax payable 1,367 1,362 Other liabilities 6,814 7,603 Total Liabilities 126,150 178,257 Commitments and Contingencies Stockholders' Equity Common stock 20 20 Additional paid-in capital 240,150 239,983 Accumulated deficit (118,758 ) (118,094 ) Accumulated other comprehensive loss (538 ) (1,305 ) Total Stockholders' Equity 120,874 120,604 Total Liabilities and Stockholders' Equity $ 247,024 $ 298,861 Turtle Beach CorporationCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Table 3. Three Months Ended March 31, 2025 March 31, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (664 ) $ 155 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 1,110 916 Amortization of intangible assets 2,016 560 Amortization of debt financing costs 276 70 Stock-based compensation 1,912 1,105 Deferred income taxes (445 ) (6,716 ) Change in sales returns reserve 1,873 (2,410 ) Provision for obsolete inventory 486 794 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 48,891 35,918 Inventories (2,899 ) (3,063 ) Accounts payable 4,716 8,065 Prepaid expenses and other assets (3,473 ) (357 ) Income taxes payable (1,401 ) 2 Other liabilities (11,946 ) (7,782 ) Net cash provided by operating activities 40,452 27,257 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (166 ) (731 ) Acquisition of a business, net of cash acquired 2,515 (75,494 ) Net cash provided by (used for) investing activities 2,349 (76,225 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on revolving credit facilities 65,276 80,288 Repayment of revolving credit facilities (108,096 ) (80,288 ) Proceeds of term loan - 50,000 Repayment of term loan (312 ) (104 ) Proceeds from exercise of stock options and warrants 5 1,257 Repurchase of common stock (1,750 ) - Debt issuance costs - (3,170 ) Net cash provided by (used for) financing activities (44,877 ) 47,983 Effect of exchange rate changes on cash and cash equivalents 765 75 Net decrease in cash and cash equivalents (1,311 ) (910 ) Cash and cash equivalents - beginning of period 12,995 18,726 Cash and cash equivalents - end of period $ 11,684 $ 17,816 Turtle Beach CorporationGAAP to Adjusted EBITDA Reconciliation(in thousands) Table 4. Three Months Ended March 31, 2025 2024 (in thousands) Net (loss) income $ (664 ) $ 155 Interest expense 2,006 150 Depreciation and amortization 3,126 1,476 Stock-based compensation 1,912 1,105 Income tax benefit (1) (109 ) (6,388 ) Restructuring expense (2) 5 41 Acquisition-related expense (3) 608 4,910 Insurance recovery (4) (3,439 ) — Loss on inventory in transit and other costs (5) 605 — Adjusted EBITDA $ 4,050 $ 1,449 (1) An income tax benefit of $7.0 million was recorded in the three months ended March 31, 2024 as a result of the reversal of a portion of the Company's deferred tax asset valuation allowance. (2) Restructuring charges are expenses that are paid in connection with reorganization of our operations. These costs primarily include severance and related benefits. (3) Acquisition-related cost includes one-time costs we incurred in connection with acquisitions including warehouse lease impairment, professional fees such as legal and accounting along with other certain integration related costs. (4) Insurance proceeds from claims related to a loss of inventory while in transit that occurred in the fourth quarter of 2024. (5) Certain professional fees related to recovery initiatives in connection with a loss of Turtle Beach inventory while in transit that occurred in the fourth quarter of in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Turtle Beach Corporation Announces Growth in Revenue, Adjusted EBITDA and Gross Margins in First Quarter 2025 Results and $75 Million Share Repurchase Program
–Net Revenue of $63.9 million, up 14% compared to prior year––Gross Margin improved to 36.6%, an increase of approximately 470 basis points compared to prior year––Net Loss of $(0.7) million compared to Net Income of $0.2 million in prior year––Adjusted EBITDA of $4.1 million, up from $1.4 million in prior year––Generated $40.5 million in cash flow from operations, the highest level since 2019––Authorized a new $75 million stock repurchase program– SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported strong financial results, including growth in revenue, Adjusted EBITDA, and gross margins in the first quarter ended March 31, 2025. First Quarter Highlights Net revenue was $63.9 million, an increase of 14% compared to the prior year period. Gross margin improved approximately 470 basis points to 36.6% compared to 31.8% in the prior year. Net loss was $(0.7) million or ($0.03) per diluted share compared to net income of $0.2 million or $0.01 per diluted share in the prior year period. Adjusted EBITDA was $4.1 million, compared to $1.4 million in the prior year period. Generated $40.5 million in cash flow from operations, the highest level since 2019. Authorized a new $75 million stock repurchase program. 'With incremental revenue and margin from our March 2024 acquisition of PDP, we delivered strong Q1 growth over the prior year, despite a year-to-date decline in gaming accessories markets due to current macroeconomic headwinds. Our Adjusted EBITDA growth reflects the benefits from our expanded portfolio of next-generation gaming accessories and highlights the accretive advantages of our M&A strategy and strong execution,' said Cris Keirn, CEO, Turtle Beach Corporation. 'As we have entered into a dynamic and complex macroeconomic environment, we have rapidly adapted our operations to better position the Company for the future. We have been prepared for the potential shift in tariffs and have quickly responded. We proactively increased inventory levels at the start of the year, and following the announcement in early April of new tariffs, we took immediate and decisive action. We are pleased to report that because of our early planning and preparedness, we are transitioning significant production out of China. As such, following the first quarter, less than 10% of our supply for the U.S. will come from China. For the remainder of 2025, our U.S. supply will primarily come from Vietnam, and we will continue evaluating and implementing further diversification of our end-to-end supply chain. Additionally, we have mitigation plans in place should additional changes occur to the current tariff environment for Vietnam. The portion of our supply chain that we continue maintaining in China will primarily be dedicated to producing goods for non-U.S. shipments. 'Our commitment to long-term value creation extends beyond product innovation. Over the past year, we implemented the largest share repurchase program in the Company's history, as we continue to opportunistically return capital to shareholders. The recent decision by our board of directors to authorize the repurchase of up to $75 million of our stock over the next two years signals our continued confidence in our prospects and our continued willingness to repurchase the Company's shares. 'Given recent events in the broader macroeconomic environment, we've made thoughtful revisions in our financial outlook. We remain confident in our near-term initiatives, the expertise of our team, and our ability to drive value for shareholders. Our focus on profitability, operational efficiency, and growth continues to drive our efforts as we adapt to these evolving conditions. We appreciate the ongoing support of our shareholders and stakeholders as we work toward more growth in 2026 and execute our strategy for sustainable, long-term success." Share Repurchase Update For the first quarter ended March 31, 2025, the Company repurchased $1.8 million of common stock. Since the Company began repurchasing shares under the prior stock repurchase authorization program in the second quarter of 2024, the Company has repurchased 1.9 million shares for an aggregate purchase price of $29.5 million. In line with its continued commitment to return capital to shareholders, the Company is opportunistically assessing various potential share repurchase strategies. The Company has authorized a new stock repurchase program of up to $75 million over the next two years. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, restrictions in the Company's debt agreements and other factors. The Company intends to fund the share repurchases using cash from operations or short-term borrowings and may suspend or discontinue repurchases at any time. The share repurchase program is scheduled to expire on May 6, 2027. Balance Sheet and Cash Flow SummaryAs of March 31, 2025, the Company had net debt of $43.6 million, comprised of $55.2 million of borrowings less $11.7 million of cash. During the first quarter ended March 31, 2025, the Company generated $40.5 million in cash flow from operations, the highest level since 2019. Financial OutlookDue to the ongoing macroeconomic uncertainty and the recent industry announcements regarding new game releases, the Company is revising its financial outlook for the full year 2025. The Company currently expects gaming accessories markets to improve throughout 2025 but remain down for the full year compared to 2024, resulting in Company net revenues in the range of $340 million and $360 million. As the Company continues to execute on its profitability initiatives, it currently expects Adjusted EBITDA to be between $47 million and $53 million. Earnings Conference Call and Webcast DetailsTurtle Beach will host a conference call and audio webcast today, May 8, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), during which management will discuss first quarter results and provide commentary on business performance and its current outlook for 2025. A question-and-answer session will follow the prepared remarks. The conference call may be accessed by telephone by dialing 877-407-0792 or 201-689-8263. A live audio webcast of the earnings conference call may be accessed on Turtle Beach's website at along with a copy of this press release and an updated investor presentation. A telephone replay of the call will be available through May 22, 2025, and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13752645. A replay of the webcast will also be available on the investor relations website for a limited time. About Turtle Beach CorporationTurtle Beach Corporation (the 'Company') ( is one of the world's leading gaming accessory providers. The Company's namesake Turtle Beach brand ( is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC ( in 2024. Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol: TBCH. Non-GAAP Financial MeasuresIn addition to its reported results, the Company has included in this earnings release certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as 'non-GAAP financial measures.' Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company's results. Non-GAAP financial measures are not an alternative to the Company's GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. 'Adjusted EBITDA' is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations, as further described in Table 4. These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company's operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The non-GAAP financial measures included herein exclude items that management does not believe reflect the Company's core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted EBITDA included as Table 4 below for the three months ended March 31, 2025, and March 31, 2024. By providing full year 2025 Adjusted EBITDA guidance, the Company provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2025 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company's Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company's actual results for such periods. Cautionary Note on Forward-Looking StatementsThis press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words 'may', 'could', 'would', 'should', 'believe', 'expect', 'anticipate', 'plan', 'estimate', 'target', 'goal', 'project', 'intend' and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management's current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise. CONTACTS Investors:tbch@ 277-1285 Public Relations & Media:MacLean MarshallSr. Director, Global CommunicationsTurtle Beach Corporation(858) Turtle Beach CorporationCondensed Consolidated Statements of Operations(in thousands, except per-share data)(unaudited) Table 1. Three Months Ended March 31, March 31, 2025 2024 Net revenue $ 63,901 $ 55,848 Cost of revenue 40,534 38,062 Gross profit 23,367 17,786 Operating expenses: Selling and marketing 12,453 9,013 Research and development 3,993 3,902 General and administrative 8,216 5,674 Insurance recovery (3,439 ) - Acquisition-related cost 608 4,910 Total operating expenses 21,831 23,499 Operating income (loss) 1,536 (5,713 ) Interest expense 2,006 150 Other non-operating expense, net 303 370 Loss before income tax (773 ) (6,233 ) Income tax expense (benefit) (109 ) (6,388 ) Net income (loss) $ (664 ) $ 155 Net loss per share Basic $ (0.03 ) $ 0.01 Diluted $ (0.03 ) $ 0.01 Weighted average number of shares: Basic 20,506 18,321 Diluted 20,506 19,389 Turtle Beach CorporationCondensed Consolidated Balance Sheets(in thousands, except par value and share amounts) Table 2. March 31, December 31, 2025 2024 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 11,684 $ 12,995 Accounts receivable, net 42,354 93,118 Inventories 73,664 71,251 Prepaid expenses and other current assets 14,533 11,007 Total Current Assets 142,235 188,371 Property and equipment, net 4,884 5,844 Goodwill 50,428 52,942 Intangible assets, net 40,382 42,398 Other assets 9,095 9,306 Total Assets $ 247,024 $ 298,861 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving credit facility $ 6,592 $ 49,412 Accounts payable 39,539 34,839 Other current liabilities 26,294 39,421 Total Current Liabilities 72,425 123,672 Debt, non-current 45,544 45,620 Income tax payable 1,367 1,362 Other liabilities 6,814 7,603 Total Liabilities 126,150 178,257 Commitments and Contingencies Stockholders' Equity Common stock 20 20 Additional paid-in capital 240,150 239,983 Accumulated deficit (118,758 ) (118,094 ) Accumulated other comprehensive loss (538 ) (1,305 ) Total Stockholders' Equity 120,874 120,604 Total Liabilities and Stockholders' Equity $ 247,024 $ 298,861 Turtle Beach CorporationCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Table 3. Three Months Ended March 31, 2025 March 31, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income $ (664 ) $ 155 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 1,110 916 Amortization of intangible assets 2,016 560 Amortization of debt financing costs 276 70 Stock-based compensation 1,912 1,105 Deferred income taxes (445 ) (6,716 ) Change in sales returns reserve 1,873 (2,410 ) Provision for obsolete inventory 486 794 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 48,891 35,918 Inventories (2,899 ) (3,063 ) Accounts payable 4,716 8,065 Prepaid expenses and other assets (3,473 ) (357 ) Income taxes payable (1,401 ) 2 Other liabilities (11,946 ) (7,782 ) Net cash provided by operating activities 40,452 27,257 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (166 ) (731 ) Acquisition of a business, net of cash acquired 2,515 (75,494 ) Net cash provided by (used for) investing activities 2,349 (76,225 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on revolving credit facilities 65,276 80,288 Repayment of revolving credit facilities (108,096 ) (80,288 ) Proceeds of term loan - 50,000 Repayment of term loan (312 ) (104 ) Proceeds from exercise of stock options and warrants 5 1,257 Repurchase of common stock (1,750 ) - Debt issuance costs - (3,170 ) Net cash provided by (used for) financing activities (44,877 ) 47,983 Effect of exchange rate changes on cash and cash equivalents 765 75 Net decrease in cash and cash equivalents (1,311 ) (910 ) Cash and cash equivalents - beginning of period 12,995 18,726 Cash and cash equivalents - end of period $ 11,684 $ 17,816 Turtle Beach CorporationGAAP to Adjusted EBITDA Reconciliation(in thousands) Table 4. Three Months Ended March 31, 2025 2024 (in thousands) Net (loss) income $ (664 ) $ 155 Interest expense 2,006 150 Depreciation and amortization 3,126 1,476 Stock-based compensation 1,912 1,105 Income tax benefit (1) (109 ) (6,388 ) Restructuring expense (2) 5 41 Acquisition-related expense (3) 608 4,910 Insurance recovery (4) (3,439 ) — Loss on inventory in transit and other costs (5) 605 — Adjusted EBITDA $ 4,050 $ 1,449 (1) An income tax benefit of $7.0 million was recorded in the three months ended March 31, 2024 as a result of the reversal of a portion of the Company's deferred tax asset valuation allowance. (2) Restructuring charges are expenses that are paid in connection with reorganization of our operations. These costs primarily include severance and related benefits. (3) Acquisition-related cost includes one-time costs we incurred in connection with acquisitions including warehouse lease impairment, professional fees such as legal and accounting along with other certain integration related costs. (4) Insurance proceeds from claims related to a loss of inventory while in transit that occurred in the fourth quarter of 2024. (5) Certain professional fees related to recovery initiatives in connection with a loss of Turtle Beach inventory while in transit that occurred in the fourth quarter of while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Standard
29-04-2025
- Automotive
- Business Standard
Tata Elxsi wins prestigious iF Design Award for two of its user centric solutions
Tata Elxsi has been awarded the prestigious iF Design Award for two of its standout innovations: VelocityOne Race, designed for Nasdaq-listed Turtle Beach Corporation, a leading American gaming accessory manufacturer, and GameSense, developed for leading broadcasters and operators. VelocityOne Race was recognised in the Product - Gaming Hardware/VR/AR category, while GameSense won in the User Experience (UX) category. This dual recognition reinforces Tata Elxsi's leadership in delivering design-led, immersive solutions for the gaming and sports technology industries. Now in its 72nd year, the iF Design Award is among the world's most respected accolades for excellence in design. The 2025 edition saw more than 11,000 entries from 72 countries, evaluated by a global panel of 131 independent experts based on criteria such as Idea, Form, Function, Differentiation, and Sustainability. VelocityOne Race, developed for Turtle Beach Corporation, is a high-performance racing simulation system designed for maximum immersion. It delivers the most realistic sim racing experience in the worldpowered by cutting-edge technology and human-centered design. Tata Elxsi led the industrial design, user interface development, and engineering integration of the system. This included the Race Management Display (RMD) and the VelocityOne Tuner app, both developed to enhance real-time telemetry access and gameplay customisation.
Yahoo
13-03-2025
- Business
- Yahoo
Turtle Beach Corporation Announces Record Fourth Quarter and Year End 2024 Results
– Fourth Quarter Net Revenue Reaches Quarterly Record of $146.1 million, up 47% Year-over-Year – – Fourth Quarter Net Income of $20.1 million compared to $8.6 million in prior year – – Fourth Quarter Adjusted EBITDA Reaches Quarterly Record of $35.7 million, up from $14.0 million in prior year – – Initiates Full Year 2025 Guidance, including Adjusted EBITDA of between $68 and $72 million representing year-over-year growth of between 21% and 28% – WHITE PLAINS, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported financial results for the fourth quarter and full year ended December 31, 2024. Fourth Quarter Highlights Net revenue was a record $146.1 million, an increase of 47% compared to the prior year period. Net income was $20.1 million or $0.95 per diluted share compared to $8.6 million or $0.47 per diluted share in the prior year period. Adjusted EBITDA was a record $35.7 million, an increase of 156% compared to the prior year period. Full Year Highlights Net revenue was $372.8 million, the largest revenue year in Company history and an increase of 44% compared to the prior year. Net income was $16.2 million or $0.78 per diluted share compared to a net loss of $(17.7) million or $(1.03) per diluted share in the prior year. Adjusted EBITDA was $56.4 million, compared to $6.5 million in the prior year. 'We are pleased to report another outstanding quarter, generating the highest quarterly net revenue and Adjusted EBITDA in the Company's history and building on positive momentum for continued growth. Our highly accretive integration of PDP has meaningfully enhanced our scale and market reach. Fourth quarter revenue expanded by 47% year-over-year to $146.1 million, and Adjusted EBITDA increased to $35.7 million, reflecting benefits from our next-generation gaming accessories lineup and streamlined operations. For the full year, our significant revenue and Adjusted EBITDA growth, accelerated by our acquisition of PDP, underscores the strength of our core business and relentless focus on execution. Gaming accessories markets continue to represent a large and attractive opportunity, particularly in our key categories. We are driving further opportunities for growth and value creation as we execute our operational and capital allocation strategies,' said Cris Keirn, CEO, Turtle Beach Corporation. 'Turtle Beach's transformational year in 2024 reflects our focused approach to drive profitable scale and diversification. We expect to realize more than $13 million in annual synergies from the PDP acquisition, surpassing our initial expectations. Having now proven that we can quickly integrate a large acquisition, we are committed to pursuing potential complementary products and companies accretive to our leading gaming accessories portfolio. We will continue to be disciplined in the deployment of our capital, but we are excited about the opportunities for growth and will provide updates accordingly as we progress.' 'Separately, we are also focusing on the drivers that we can fully control, including a number of strategic initiatives that we have undertaken in our core product offerings that should propel our growth independent of any acquisitions. As an example, several of our 2024 product launches were built on our next-generation platform design, a key strategic initiative to combine best-in-class product performance for gamers with significant improvements to our cost structure.' 'As a result of our coordinated organic initiatives and integration efforts, and despite a loss on inventory while in transit in the fourth quarter, our gross margin expanded by 500 basis points to 37.0% for the fourth quarter and by 530 basis points to 34.6% for the full year.' 'We remain dedicated to further expanding our market leadership while increasing value for our shareholders and gaming customers worldwide. Our commitment to long-term value creation has been demonstrated by consistent execution of our share repurchase program. Over the past year, we've repurchased nearly $28 million worth of stock at an average price of $15.39 per share. This represents the largest share buyback in our history, highlighting our dedication to returning capital to shareholders while making strategic investments to grow the Company. These repurchases underscore our unwavering confidence in Turtle Beach's future.' Share Repurchase UpdateFor the fourth quarter ended December 31, 2024, the Company repurchased approximately 162,000 shares of common stock for an aggregate purchase price of $2.4 million. For the full year ended December 31, 2024, the Company repurchased 1.8 million shares for an aggregate purchase price of $27.8 million, or $15.39 per share. As of December 31, 2024, the Company has $18.8 million remaining to repurchase shares under its share repurchase program which expires on April 9, 2025. In line with its continued commitment to return capital to shareholders, the Company is opportunistically assessing various potential share repurchase strategies. Balance Sheet SummaryAt December 31, 2024, the Company had net debt of $85.4 million, comprised of $98.4 million of borrowings less $13.0 million of cash. As is typical, the Company's net debt is expected to decline substantially in the first quarter, as payments from customers are received. Inventories at December 31, 2024, which includes PDP, were $71.3 million compared to $44.0 million at December 31, 2023. Financial OutlookThe Company is initiating guidance for the full year 2025 and expects net revenues to be in the range of $395 million and $405 million. The Company's outlook considers expected headwinds for gaming accessories markets in the first half of 2025 following the US gaming accessories markets experiencing a 28% decline in January year-over-year, per Circana1. Full year revenue growth is projected to be primarily driven by nearly three months of incremental PDP contributions in the first quarter of 2025, followed by a strong second half of the year for gaming accessories markets and expected Company share growth in key categories. With continued strong execution on profitability initiatives, the Company expects Adjusted EBITDA to be between $68 million and $72 million, a forecast that includes the impact of newly introduced international tariffs currently in effect. Adjusted EBITDA guidance translates to between 21% to 28% expected growth year-over-year for Adjusted EBITDA. The Company is reiterating its long-term goals of a 10%+ revenue CAGR, is now focused on a mid-to-high-30's gross margin percentage and has increased expectations for mid-to-high-teens percentage Adjusted EBITDA margins. Earnings Conference Call and Webcast DetailsTurtle Beach will host a conference call and audio webcast today, March 13, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), during which management will discuss fourth quarter results and provide commentary on business performance and its current outlook for 2025. A question-and-answer session will follow the prepared remarks. The conference call may be accessed by telephone by dialing 877-407-0792 (domestic) or 201-689-8263 (international). A live audio webcast of the earnings conference call may be accessed on Turtle Beach's website at along with a copy of this press release and an updated investor presentation. An audio replay of the call will be available on the Company's investor relations website for a limited period of time. About Turtle Beach CorporationTurtle Beach Corporation (the 'Company') ( is one of the world's leading gaming accessory providers. The Company's namesake Turtle Beach brand ( is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC ( in 2024. Turtle Beach's shares are traded on the Nasdaq Exchange under the symbol: TBCH. Non-GAAP Financial MeasuresIn addition to its reported results, the Company has included in this earnings release certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as 'non-GAAP financial measures.' Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company's results. Non-GAAP financial measures are not an alternative to the Company's GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. 'Adjusted EBITDA' is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations, as further described in Table 4. These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company's operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The non-GAAP financial measures included herein exclude items that management does not believe reflect the Company's core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted EBITDA included as Table 4 below for each of the three and twelve months ended December 31, 2024, and December 31, 2023. By providing full year 2025 Adjusted EBITDA guidance, the Company provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2025 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company's Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company's actual results for such periods. Cautionary Note on Forward-Looking StatementsThis press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words 'may', 'could', 'would', 'should', 'believe', 'expect', 'anticipate', 'plan', 'estimate', 'target', 'goal', 'project', 'intend' and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management's current beliefs and expectations, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company's other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise. CONTACTS Investors:tbch@ 277-1285 Public Relations & Media:MacLean MarshallSr. Director, Global CommunicationsTurtle Beach Corporation(858) _____________________________1 Circana, LLC/U.S. Video Game Industry Sales/Dollars/January 2025 Turtle Beach CorporationCondensed Consolidated Statements of Operations(in thousands, except per-share data)(unaudited) Table 1. Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net revenue $ 146,077 $ 99,538 $ 372,766 $ 258,122 Cost of revenue 92,088 67,734 243,784 182,618 Gross profit 53,989 31,804 128,982 75,504 Operating expenses: Selling and marketing 16,140 13,032 52,429 43,489 Research and development 4,502 4,467 17,304 17,137 General and administrative 8,899 5,946 28,388 31,321 Acquisition-related cost 1,018 - 10,832 - Total operating expenses 30,559 23,445 108,953 91,947 Operating income (loss) 23,430 8,359 20,029 (16,443 ) Interest expense 2,986 251 8,068 504 Other non-operating expense (income), net 315 (405 ) 1,289 394 Income (loss) before income tax 20,129 8,513 10,672 (17,341 ) Income tax expense benefit (10 ) (39 ) (5,511 ) 338 Net income (loss) $ 20,139 $ 8,552 $ 16,183 $ (17,679 ) Net income (loss) per share Basic $ 1.01 $ 0.49 $ 0.81 $ (1.03 ) Diluted $ 0.95 $ 0.47 $ 0.78 $ (1.03 ) Weighted average number of shares: Basic 19,937 17,449 20,022 17,135 Diluted 21,136 18,383 20,832 17,135 Turtle Beach CorporationCondensed Consolidated Balance Sheets(in thousands, except par value and share amounts) Table 2. December 31, December 31, 2024 2023 (unaudited) ASSETS (in thousands, except par value and share amounts) Current Assets: Cash and cash equivalents $ 12,995 $ 18,726 Accounts receivable, net 93,118 54,390 Inventories 71,251 44,019 Prepaid expenses and other current assets 11,007 7,720 Total Current Assets 188,371 124,855 Property and equipment, net 5,844 4,824 Goodwill 52,942 10,686 Intangible assets, net 42,398 1,734 Other assets 9,306 7,868 Total Assets $ 298,861 $ 149,967 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving credit facility $ 49,412 $ — Accounts payable 34,839 26,908 Other current liabilities 39,421 29,424 Total Current Liabilities 123,672 56,332 Debt, non-current 45,620 — Income tax payable 1,362 1,546 Other liabilities 7,603 7,012 Total Liabilities 178,257 64,890 Commitments and Contingencies Stockholders' Equity Stockholders' Equity 20 18 Additional paid-in capital 239,983 220,185 Accumulated deficit (118,094 ) (134,277 ) Accumulated other comprehensive loss (1,305 ) (849 ) Total Stockholders' Equity 120,604 85,077 Total Liabilities and Stockholders' Equity $ 298,861 $ 149,967 Turtle Beach CorporationCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Table 3. Year Ended December 31, 2024 December 31, 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 16,183 $ (17,679 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 4,407 3,830 Costs recognized on sale of acquired inventory 2,085 — Amortization of intangible assets 6,984 1,009 Amortization of debt financing costs 902 141 Stock-based compensation 6,172 11,983 Deferred income taxes (6,859 ) (44 ) Change in sales returns reserve 784 632 Provision for doubtful accounts — (3 ) Inventory recorded to net realizable value 5,661 810 Loss on impairment of assets 753 — Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (15,624 ) (5,757 ) Inventories (12,257 ) 27,336 Accounts payable (1,088 ) 1,772 Prepaid expenses and other assets (227 ) 1,437 Income taxes payable (159 ) (283 ) Other liabilities (1,956 ) 1,860 Net cash provided by operating activities 5,761 27,044 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (4,914 ) (2,159 ) Acquisition of a business, net of cash acquired (77,294 ) — Net cash used for investing activities (82,208 ) (2,159 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on revolving credit facilities 346,906 210,210 Repayment of revolving credit facilities (297,494 ) (229,263 ) Proceeds of term loan 50,000 — Repayment of term loan (1,042 ) — Proceeds from exercise of stock options and warrants 3,356 2,261 Repurchase of common stock (27,778 ) (974 ) Debt issuance costs (2,897 ) (80 ) Net cash provided by (used for) financing activities 71,051 (17,846 ) Effect of exchange rate changes on cash and cash equivalents (335 ) 291 Net increase (decrease) in cash and cash equivalents (5,731 ) 7,330 Cash and cash equivalents - beginning of period 18,726 11,396 Cash and cash equivalents - end of period $ 12,995 $ 18,726 Turtle Beach CorporationGAAP to Adjusted EBITDA Reconciliation(in thousands) Table 4. Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 (in thousands) Net income (loss) $ 20,139 $ 8,552 $ 16,183 $ (17,679 ) Interest expense 2,986 251 8,068 504 Depreciation and amortization 3,287 1,166 11,391 4,839 Stock-based compensation (1) 2,724 3,429 6,172 11,983 Income tax expense (benefit) (2) (10 ) (39 ) (5,511 ) 338 Restructuring expense (3) 310 (0 ) 1,967 1,061 CEO transition related costs (4) — — — 2,874 Acquisition-related cost (5) 1,018 653 10,832 653 Incremental costs on acquired inventory (6) — — 2,084 — Loss on inventory in transit (7) 3,398 — 3,398 — Proxy contest and other litigation (8) 1,803 (15 ) 1,833 1,921 Adjusted EBITDA $ 35,655 $ 13,954 $ 56,417 $ 6,494 (1) Increase in stock-based compensation in the year-ended December 31, 2023, primarily driven by $4.0 million charge related to the accelerated vesting of equities of the Company's former Chief Executive Officer. (2) An income tax benefit of $7.6 million was recorded as a result of the reversal of a portion of the Company's deferred tax asset valuation allowance in 2024. (3) Restructuring charges are expenses that are paid in connection with reorganization of our operations. These costs primarily include severance and related benefits. (4) CEO transition related expense includes one-time costs associated with the separation of its former CEO. Such costs included severance, bonus, medical benefits and the tax impact of accelerated vesting of stock-based compensation. (5) Business transaction expense includes one-time costs we incurred in connection with acquisitions including warehouse lease impairment, professional fees such as legal and accounting along with other certain integration related costs. (6) Costs relate to the step up of acquired finished goods inventory to fair market value as required under purchase accounting. This step up in value over original cost is recorded as a charge to cost of revenue as such inventory is sold. (7) Reflects a loss of Turtle Beach inventory while in transit that impacted the three months ended December 31, 2024. (8) Proxy contest and other primarily includes (a) a $1.7 million judgement in an insolvency dispute in Germany recorded in 2024, and (b) one-time legal and other professional fee associated with proxy challenges presented by certain shareholder activists in 2023. Sign in to access your portfolio
